Which of the Following Is True of Perfect Price Discrimination

question 156

Multiple Choice

Which of the following is true of perfect price discrimination?

• A)Profit is lower than it would be without discrimination.
• B)Revenue is higher than it would be without discrimination, but profit is lower.
• C)Average revenue and average cost are both higher than they would be without discrimination, so it is not certain whether profit will be higher.
• D)Consumer surplus is zero.
• E)Profit is zero.

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Definitions:

Situational Constraints

External factors that restrict or dictate an individual's actions in a given situation, limiting the options available.

Stable Personality Traits

Personality characteristics that are consistent over time and across situations.

Behavioral Tendencies

Patterns or propensities to behave in certain ways across different situations and over time.

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